Natural Gas News – February 28, 2019

Natural Gas News – February 28, 2019

Natural Gas Prices To Remain Low… For Now

Oil Price reported: The U.S. suffered though multiple bouts of severe cold in the last few weeks, but the weather has done very little to rescue low natural gas prices. Henry Hub gas prices have been wallowing below $3/MMBtu for much of this winter, after briefly trading at multi-year highs late last year. Low prices are remarkable for several reasons. First, the U.S. entered the peak winter demand season with gas storage at its lowest level in 15 years. Indeed, a thin cushion of gas sitting in storage helped spark the price rally in November. But the price spike was fleeting, a notable development for a second reason. Demand soared to new heights this winter, particularly during bouts of extreme cold. Gas consumption broke record highs in late January after half of the U.S. suffered through a deep freeze. Residential/commercial consumption in the Midwest reached 26 Bcf on January 30, an all-time high. For more on this story visit oilprice.com or click https://bit.ly/2Nyfc5Y

US Oil Is Trickling Back Into China After Export Boom Goes Bust

CNBC reported: The ongoing U.S.-China trade dispute stopped a surge in American oil exports to the Middle Kingdom, but as Washington and Beijing inch toward a deal, a trickle of U.S. crude appears to be making its way to Chinese shores. The development comes as U.S. and Chinese negotiators recently wrapped up talks that prevented tariffs on hundreds of billions of dollars in goods from rising sharply on March 1. The dispute has disrupted once robust trade in energy products such as crude oil and liquefied natural gas between the world’s two biggest economies. China emerged as a major buyer of U.S. crude after President Barack Obama and Congress lifted the 40-year ban on exporting crude oil in 2015. During some months last year, China surpassed Canada as the top importer of American oil. Beijing has declined to slap an import tax on U.S. crude in retaliation against the Trump administration’s tariffs on Chinese goods. But Chinese buyers nevertheless stopped purchasing American supplies last year as the trade dispute with Washington escalated. For more on this story visit cnbc.com or click https://cnb.cx/2Tj8RRb